Tombran and Milardovic were both charged with two counts of fraud and two counts of making misleading or untrue statements, breaches of s. 122 of the Securities Act (Ontario). The JSOT investigation was launched in early 2013 and the charges relate to the defendants' alleged roles in fraudulent schemes involving Cannon Explorations and Therma-Med. Both companies are quoted on the OTC Market in the United States.

"Our Joint Serious Offences Team is mandated to aggressively pursue fraudulent activity that harms retail investors. This case demonstrates that we will work with our partners to prosecute serious allegations of quasi-criminal behaviour in timely fashion," said Tom Atkinson, Director of Enforcement at the OSC.

The first court appearance for Tombran and Milardovic in this matter is scheduled to take place February 28, 2014, at 11:00 a.m. in Courtroom number 111 at Old City Hall – Ontario Court of Justice, 60 Queen Street West in Toronto, Ontario.

JSOT was established in May 2013 by the OSC as an enforcement partnership between the OSC and the Royal Canadian Mounted Police Financial Crime program. The primary objective of JSOT is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. This is accomplished through collaborative investigations of serious violations of the law using the provisions of the Securities Act (Ontario) and/or the Criminal Code of Canada.

The OSC – JSOT appreciates the assistance provided to this investigation by staff from the Securities and Exchange Commission in Washington. D.C.

Investors are urged to check the registration of any person or company offering an investment opportunity and to review the OSC investor materials available at www.osc.gov.on.ca.